Indonesia weighs higher fuel subsidies as crude prices rise
Energy Minister Bahlil Lahadalia said subsidised fuel prices would not rise, with the average Indonesian crude price at US$92 per barrel.
Indonesia may increase fuel subsidies to prevent a rise in subsidised pump prices as crude oil becomes more expensive, Energy and Mineral Resources Minister Bahlil Lahadalia said on 21 October 2026.
Speaking at the State Palace in Jakarta, Bahlil said the government was assessing the continued increase in the Indonesia Crude Price (ICP). Further rises would be likely to require additional subsidy funding, he said.
Bahlil put the average ICP at US$92 per barrel, compared with an assumption of about US$70 per barrel in the state budget. The increase in global crude prices comes amid tensions in the Middle East.
He reiterated the government's commitment to keeping subsidised fuel prices unchanged. Bahlil also said the government was targeting an ICP below US$100 per barrel if current conditions continued, a level he considered manageable for maintaining those prices.
